Studying on the Linkage Mechanism between Local Financial Risk and Local Government Liabilities

Articles

Studying on the Linkage Mechanism between Local Financial Risk and Local Government Liabilities [EBM 2013]
Author(s)
Yuxin Ning, Fen Xue
ABSTRACT
the paper mainly explores how to build regulating mechanism between local financial risk and local government liabilities with the increasing of local government liabilities after the financial crsis. Firstly, the paper analysis the inherent motive mechanism to promote the increasing of local government liabilities, then illustrates that high leverage and high investment of local project has the potential probabilites to induce the rising of local financial risk. Therefore, it is meanful to build the linkage mechanism between local financial risk and local government liabilities. The paper analysis the building way and the important areas which should be paid more attention to protect the potential financial risk.
KEYWORDS
the Inherent Motive Mechanism; Conduction Mechanism; Evaluation Index; the Linkage Mechanism
References
[1]
LiCheng Regional Financial Risk Control: The Supervision System Axes of Central Bank, Journal of Xi.an Institute of Finance and Economics.2003:23-27
[2]
TAN Zhong-ming:Design of Regional Financial Risk ‘Early Warning System and Its Comprehensive Measurement ,Soft Science,2010,24(3) P69-74.